Temenos AG (SWX:TEMN)

CMD 2019

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May 21, 2019

Good morning, everyone. Thank you very much for joining us today at our 2019 Capital Markets Day. We are delighted to have you all here. I think we've got a very exciting view. You can see the agenda behind me on the screen. We'll start off with Max, our CEO, talking about our strategy and our key growth drivers. We will then move on to product. We'll have Mark Winterburn, our Chief Product Officer, giving an overview of how we invest in our product, and we've got 6 of our product directors on stage for you today giving you some insight into how we address the 6 key drivers of growth that Temenos has. We will then move on to Alex Aguinon, our Chief Client Officer, who will be talking about our implementation and our partner work. We're delighted to have one of our clients here, Bank Lumi, who will talk about their transformation journey as well and how they partner with Temenos. And then we'll finish up with Takis, our CFO, talking about how we drive and create shareholder value and Kalliopi, who's our Director of CSR, talking about our corporate social responsibility. We will not be giving any trading update. We're in the middle of Q2, so please refrain from questions on the quarter. And I'd encourage you to use the coffee break and lunch session to network with the Temenos management team, ask questions that during that period. And we'll also have a Q and A panel at the end for any further questions. So with that, I will hand straight over to Max to kick off the session. Thank you, Adam. Good morning, and thank you for coming this morning in this amazing venue and in such a nice day as well. Listen, I was having coffee with some of you, and I can see the excitement about the announcement we made this morning about the excitement about what we are going to present today. So let's get started. We meet almost every quarter we speak on a quarterly basis. I think it's very important that once a year, we step back from the quarters or specifically the year, and we look at terminals on a broader basis. And we look at the trends, we look at what we've achieved and where we are going, which is exactly what we want to do today. Now if we look at what we've achieved in the past, the trend is extremely clear. We've been growing sustainably, predictably at more than 20% year over year. So how have we done that? Why have we been able to deliver that growth? Well, first of all, we operate in a huge market. It's a €57,000,000,000 market, and it is growing as well. And still today banks, they still build by far most of the software still 80% of that €57,000,000,000 is done in house. So a massive opportunity and a growing one. We are already the leader in that market. Already, we are the vendor of choice with credibility, with references, with scale that allows us to invest more than anyone else. So already we are there. And we benefit from 6 drivers of growth and we discuss those in much more details. And so far, we've not yet benefited from all of them. We focus more on one of them. And we'll see why now we've got all the company aligned to deliver on those 6 drivers of growth. It's not anymore about terminals only. It's a community. It's ecosystems of partners. We've got 6,000 trained consultants on our software. It's about 3,000 customers. And I know some of you came to our TCF, which is our yearly customer event, and we had 2,000 people in that room that wants to be part of that community where we share to get benefits of being part of that club. And obviously, over the years, we very nicely complemented and accelerate our growth through bolt on acquisitions. Now there is one message and the way we've structured the day is to give you the comfort that what we've achieved in the past is sustainable for the long term and we'll discuss why this is the case that Temenos has everything to continue and deliver long term sustainable license growth at more than 15%. That's super exciting. That's super exciting. Who can say that they've got such a future? I will discuss each of the elements why this is the case. Let me start, if that's okay with you, with looking in more detail at the market where we operate. So the market where which is obviously our opportunity. As I said, a very large market, EUR 57 billion and growing, growing at a 5% compound gross per year. And most of its spend is done in house, because historically in the 1670s banks have built their own software. And all the majority of the spending that is done in house does not go to innovate, does not go to create new products. It goes to maintain the legacy software that have been built in the 60s 70s. And they understand that there's an urgency to change. There's an urgency to transform to be able to adapt in a digital environment. And clearly, you can see that the growth goes to 3rd party software, packaged software, upgradable software, where you can continuously bring innovation to your customer. So our addressable markets right now is at 20%, this EUR 12,000,000,000 growing at 8% on average. Clearly, as we've seen, we've grown much faster than that, at more than 20%. So we've been gaining market share. And remember, this is a winner take it all market. At the end, you will have one winner out of there. And Telnos is clearly on that way. That's very exciting. So a very large market growing. We've been gaining market share and we'll continue to grow faster than the competition. And there is an urgency, an urgency to change that has never been greater. It is recognized by everyone, by the bank themselves, by industry analyst experts. Never before there had so many multiple structural drivers for the bank to change. It's much tougher for the banks today. In the past, banks used to enjoy more than 10% return on equity. That's not the case anymore. Clearly, through after the financial crisis in China 8, the returns have dramatically reduced. So they need to do something that cannot operate like that. And when we talk to CEO of the banks, that's one of the main concern, how do they bring back profitability. Regulation over the years has massively increased. And even some countries where regulation is less, they are still looking at adapting the standards from a governance point of view. Look at open banking, what it does to banks. So clearly, regulation has been clearly a big driver. Customer exchange, Customer expect the Amazon like experience from the banks. Why can you not get that from your bank? And you will see from Lomi later on how banking can be cooler and you'll see what they've done, which is very exciting. So the customer is expecting different experiences. But how can you offer that experiences if you still operate on a siloed basis? How can you have a seamless end to end experience? And you've got new competitors, new entrant in the market. You get new banks, new digital banks, like we discussed what Pepper did with Slummi, how they are challenging the incumbent vendors because of technology. Technology today allows bank to go up within weeks on the cloud with a new platform, very nimble, very innovative. So never before we had so many multiple structural drivers for the banks to change, to innovate. And clearly, the understanders said that there is a need to transform. There's a need to be to innovate, to be more agile. However, they cannot do that with the legacy systems, clearly hindered by the legacy systems that don't allow them to operate. And remember, those legacy systems build pre the Internet age in computer language at Trinault is not teach anymore with hardware which extremely expensive, with thousands of people that are maintaining that software. And the risk related to that, the single point of failure in every of those silos is huge, Very poor customer experiences by operating on a siloed basis that need to change. We are in a time of innovation or speed to innovation. We need to continuously innovate. How can you do that with a legacy system? You cannot. Speed to market, which is key, cannot be delivered. You'll hear as well from our customer, why can you open you cannot open an account within seconds of minutes? Why does it take weeks, months to launch new products? It's because of the infrastructure, the legacy infrastructure. And obviously, you cannot benefit from all that data. How can you not you cannot benefit from the data from the customer experiences. And basically through AI, you cannot bring new product to market. So clearly, banks are hindered by the legacy systems. Now let's look at how we position ourselves in the future and today and how what are our ambitions for that market. First, Telenor's is uniquely positioned, uniquely positioned to transform that market. We only do that, I mean, for the last 25 years, that's the only thing that we've been doing, selling to banks, selling software to banks. It's a partnership. We are only together. Their success is our success. We've got 3,000 customers in 150 countries. What is unique about Temenos is both we lead from a banking functionality, which is packaged, which is localized with all what you need to run a bank in your country from a tax, from a language point of view, from processes, which obviously derisk the implementation of launching the project, but as well reduce the time to do that. So we differentiate on having extreme package upgradable software, localized for specific countries. And then we've got advanced technology, technology which is native, cloud native, agnostic, open. We don't want to force our customers into a single stack. We give choices. In an environment where technology moves so fast, you need to be open, you need to give choices to the banks for them to decide which technology they want to go for. So this is where we are unique and nobody has this in the market, both the packaging and the advanced technology. And all of that is because we have a relentless focus on innovation. We are a product company, that's what we do. Day in, day out, that's what we think. We spend 20% of our sales on the product every year. That's more than anyone, more than our customers. And I said we have this ecosystem already in place with 6,000 partners trained on our software. We even have now a platform which we call TLC, which allows banks to train, we industrialized our training for our partners to give us scale. So this is what is unique about Temenos. And only Temenos because of those attributes can dramatically reduce the cost of transformation and bring agility and innovation to our customers. Only Theranos can do that. We are already the vendor of choice. Already and if you like, appreciate looking at the core banking specifically over the last 5 years. We outsell our competitors by an average of 5 times over that period of time, 5 times. And if you look at our closest competitor, more than twice we sell more than twice as them. And we've said it many times, software is a winner take it all. And we've seen it in other industries because at some stage, you've got so much more credibility, more scale, more references. You can invest much more in the product that the number 2 and the number 3 cannot cope anymore. And that's why there is one vendor of choice at the end. And that leadership is accelerating. Look at how we competed against our closest competitor in 2022 and in 2018, an acceleration of that leadership. And now you've all heard of our new product that we launched, Temenos Infinity, Temenos, 2024 Transact, which are game changing product. And those products will even accelerate our leadership in the future. It's always great as well to be recognized by independent 3rd party experts. So you can see here IBS, which issue a league table and we've announced this morning that once again we are at the top of that league. We've been the best selling core banking board for the last 14 years. But we now start as well to make inroads in our decent product on digital, on payments as well we've been number 1 vendor. Forrester as well, another research, who's been named again for the last 12 years consecutively the best vendor for new name and for new and existing names. So very exciting to be also recognized by the industry independent industry experts. Now we benefit from 6 drivers of growth. And let's be frank, up to now, we've really only sold the majority of what we sell continues to be T24 transact. That's the majority of what we do today. A large market, a 5,000,000,000 market growing at 7%. But now we've got 6 drivers. We've never had so many products to sell. And that's super exciting. Look at Infinity through the acquisition of Avoca that we did at the end of last year. We've got now end to end digital front office platform. And the front office is as big as a back office and growing faster at 8%. And this is totally indefinite. You can sell Infinity with banks using a different core at the back, all of that integrated through APIs. Wealth, payment, founder, SaaS, never before we had such an opportunity. So what you are going to hear today and you are going to hear it from our product leaders as well, from our services organization, how we are structured internally end to end around those 6 drivers of growth to ensure we capture the opportunity for each of those products. Clearly, core or T24 transact is where we've had our leadership so far, the largest part of our leadership. And we've got today a 16% market share. This is on a global basis. So clearly, internationally, our market share will be higher than that, in the range of 20% to 25%. And in the U. S, we'll be lower, probably around the 5%. So a global market share of 16%. Now remember, this is a growing market. Remember, we've been growing market share. We've been growing faster than the competition. And we've got today more than 700 customers on core, 750 customers on core. We've got credibility. So clearly, our goal for the future for the long term is at least to double that leadership and that market share in core. Now at the same time, if you look at all the other products, we capture combined a 5% market share. Obviously, some of them have a higher market share. This is an average. Like fund, we've made very good inroads and Odette will say more about that. But others like payment, we've had a smaller market share, but growing as well. There is no reason why we cannot get those other products to the same leadership position as we enjoy on the core side? No reason. In fact, we did all the hard work on the core when we started selling to the smaller banks, getting the credibility, getting the references, getting the partners, all of that is done. So all of that, our other product will benefit from it. So for the future, for the long term, we want to take the other product to the same leadership as where we are today on core. So to at least triple our penetration in these other products. Tier 1 and Tier 2 represent around 2 third of the spending. And today, we've penetrated around a third of those Tier 1, Tier 2 banks. So we do business with around a third of the Tier 1 and Tier 2 banks globally. Clearly, in Europe, which is where we started, we have a larger penetration, which, as you can see, is growing as well. And in other regions like in the Americas or in Asia, we have a smaller one, but as well growing. As you know, the last 5 years, we gained most of the large deals that came to market, the majority of the large deals that came to market. So we want to continue to gain those deals. There is no reason why we are not going to continue to do that because we've got the credibility, the references. And obviously, we want to extend us what we do with those large banks. It is about continuously renovating a bank. It is about a partnership. I know Iain from Lomi will discuss it later on. It's a partnership for the long term. And those are the discussions we have with the customers is how do we transform continuously the bank. Obviously, we love to sign new Tier 1 banks because it give us an entry point and then we can grow that relationship. So today, we capture less than 5% of the wallet share of those large banks. And in the future, we want to at least double that. And you can see on the right hand side that, that spending has been growing by at least 30% year over year on a CAGR basis. Let's look at the future now. Let's look at our strategic initiative and how those will support ultimately our end goal of growing sustainably our license by at least 15%. So those initiatives to drive growth obviously are centered around investment continued investment and enhancing of our winning solution, our products to accelerate and also to open up new markets. It is about geographic expansions in strategic markets, and we discussed obviously the U. S. Specifically. It is about investing in sales, in specialized sales, in cloud and SaaS, talent, people. It is about nurturing that partner ecosystem to support our growth, to give us scale. And obviously, it is also to continue to acquire companies that can accelerate our growth. Obviously, we continue to do that by operating on a socially and responsibly way, which is the only way to sustain growth for the future. So if we look at our products and Enhance, what we've done, obviously, you've all seen and we've discussed quite a bit our new product, cloud native, cloud agnostic. The benefit of that is huge. The ability to elastically scale up and down and really to use on demand for what you need to have the resilience that clouds offers, Multi cloud, active active, nobody offers that. Nobody can offer that. You can run it on Azure. You cannot run it on AWS. If one drops, it continues without any interaction on the other one. Cloud agnostic, we offer choice to our customers. The choice of the technology because technology moves so fast, innovation moves so fast, you cannot lock them in a specific stack. They need to have the choices. They need to have the ability to choose from a cost point of view, from a performance point of view. We operate in an environment where speed of innovation is so important and we'll continue on that way. How to launch product faster, how to build, test in the morning and you deploy in the afternoon, how to continuously innovate. It's obviously about being APIs first. We have more than 400 APIs today. We distribute those APIs with our software. You can even find them in our development our Temoz development portal. And this faster the we saw CPaaS you can rapidly integrate and it innovate at a low risk and cost. And obviously, it is also about opening new markets. And we've announced earlier this year a strategic collaboration with Bloomberg and Odette will give us an update on this, how to open a new marketing, in this case on the buy side, a 5,000,000,000 technology market. And hopefully, your debt, our first deals in Q2. So that's on this product side. Clearly expanding the market, expanding our strategic market. And clearly the U. S, which represent between 35% 40% of the spending is a key market for us. I'm very pleased that we've made major progress over the years. Just in 2018, we reached 100,000,000 firm use in the U. S. So we've at scale, 430 employees, 16% of our license in 2018 came from the U. S, 7 offices. And clearly, the acquisition of Aboca is giving even more momentum to our U. S. Strategy. And we had major success with company like Commerce, PayPal, new entrants like Varo, Grasshoppers. So very pleased. Our strategies for the U. S. Is extremely clear. So we continue to focus at the top end of the market with all our products. Those are the institutions with more than EUR 10,000,000,000. It's around 120 of them. And we've seen strong progress. And just to give you an example, we signed a very strategic account in Q4 of last year for Infinity. And they get the benefit of Infinity. And the discussion is now about why don't we get the full benefit of your platform because they are still using homegrown legacy software at the back. So now we are starting towards a discussion about why don't we change the back to get the full benefit on the Infinity side. So there is scale now in the U. S. Then with Infinity or with now with the acquisition of Aboca, we gave us this end to end digital front office platform, we can also address the mid market. So the EUR 3,000,000,000 to EUR 10,000,000,000 asset under management, and there you've got around a bit more than 1,000 institution in that market. Already, Avoca has around 50 customers in that market. So also very exciting to be able to further develop that mid market. And obviously, we'll continue as we've done with Varo, with Grasshopper to continue to capture the new entrants, the neobanks of that market. It is about investing in sales. We've been investing in sales for the last 3 years at 30% per year. But it's also about investing for those initiatives, those 6 drivers of growth. That's where we invest in specialization. So you can see here how we track our investment in sales. Clearly, you can see at the top that Infinity, because of the acquisition of Aboca where we got a lot of skilled from that team, we are almost there on the Infinity side. There is still a little bit on transact, but we are quite well ahead. And wealth and payment is probably where we need to invest more. I think we are probably 2 third of the way on the pre specialization and we'll be there by the end of 2020. So continuous investment in sales and pre sales obviously. Being the leader in that market, a winner brings winners. And that's why we've been able to attract talent at Temenos. But at the same time, we've built what we call our sales academy so that internally, we are able to train, mentor new talent to deliver on that growth. SaaS and cloud, I mean, that's super exciting. What technology allow you to do? And look at how this has grown over the years. We were the 1st in 2011 to talk about cloud first. We've got 33 core clients on our cloud offering, 400 clients in total. It's an organization within Temenos and Andrew will discuss it later on, with 120 employees just focusing on that. And it is growing extremely faster. It grew by a multiple of 6 times the total contract value on the LTM. And I know that we've not been very transparent with you so far on our different metrics on SaaS and cloud. And TAC is later on is going to give you more information on that side, so that you can better model the opportunity that we're addressing on our cloud and SaaS business. It is about our partner ecosystem, which is growing to support us and to support our growth. You know that in 2018, every single working day, a bank was going live on our software. Every day, we had 233 go live in 2018. Almost 1500 go live in the last 8 years. And that we've achieved because of our partners. We couldn't do it without them. And they are very excited because they see, they understand the growth, which is in front of us. We've brought to them a training platform, which is basically that has industrialized the training for them, which we call TLC Tenos Learning Community. And since then, we've seen a huge growth of people going and getting trained. Today, 6,000 of them are skilled on our software. As we've done for the past, we'll continue to use technically M and A to complement our growth. It is about how can we capture a bigger piece of that €57,000,000,000 market, which is a huge market in banking. How can we get more from that? And if we see if we found a company that can get us there faster, definitely, we've got all the mean to be able to do those acquisitions. So M and A will be about accelerating growth in key geographies, as we've said, as we've done very successfully over the years. Clearly, the U. S. Has been one way. Australia, remember when we bought Trubic? And since we bought Trubic 2 years ago, Australia has become a very material market for us in Asia Pacific. It is about as well buying some complementary products like what we've done with Avoca, which very nicely complements our digital front office platform. And now we've got so much more momentum with Infinity. And finally, about increased scale, even though today we do have the scale, but sometimes we bought some competitors and then moved them on our platform. So our ambitions and how we are going to deliver sustainable and long term growth. It's about our huge market, a growing market, remember. It is about already being recognized and leading that market and having all the benefit of being the leader, investing more in the product. Credibility, a community of with our customers, with our partners. We benefit from 6 drivers of growth Never before we had so many products. Never before we had an organization aligned end to end around those 6 drivers of growth. It's our partners that give us scale, that give us the ability to grow faster. It is about accelerating growth, organic growth through bolt on acquisitions. Now I've been with Temenos for 17 years. And never before it was so exciting. And it is not because I'm the new CEO of Temenos, maybe a little bit, but it's because for the last 25 years, we've built that credibility. We've built those references. We've built that partner ecosystem. And with that scale, it will be €1,000,000,000 this year of revenues. And we've seen it again and again in other industries. When you get to €1,000,000,000 and there is nothing magic about €1,000,000,000 but the fact that you get to €1,000,000,000 means that you've got that capability, you've got those references, you've got that partner ecosystem. And what we've seen in other software industries, when you get there, growth accelerate, when you get there, you become the category killer in that specific market. And this is what we want to do. This is we want to be the category killer in banking. That's what we want to do. And we are extremely well placed. So this is why it's very exciting times at Temis right now. Thank you very much. So Marc now is going to walk us through our different products and how those products are so aligned on our 6 drivers of growth. Thank you, Mark. Good morning, everyone. My name is Mark Winterburn. I run the product group at Temenos. Asim and the team are now very worried because they've allowed product onto the stage and we like to talk about products a lot. So he's very worried that we'll be late and overrun. So I'll try not to let him down. Just a few minutes from me just to set some context. So as you've heard Max, it is a very exciting time to be in the company. Many things have aligned. Lots of good work in previous years has come together with work we've done more recently. There is across the company a relentless focus on development on incremental change and transformational change. And a little bit later because I know I've spoken to some of you guys before you're interested in how we manage the investments around those things. So I'm going to talk to that in a little bit. But we do spend approximately 20% of revenues in the development program. We're in a very virtuous circle at the moment. We win deals. We hire more talent. We hire more talent. We win more deals. We innovate the software further. We can hire horizontal experts from across the industry. We take on young talent on a regular basis. So it genuinely is a virtuous circle. And that allows us to do more because we've got a single code base. Max talked about the 6 drivers for growth. You can independently employ those, but they're built to the same design principles, the same commitment to open and to customer choice. So each person day invested in that adds to that growing category killer as Max referred to it. So that relentless focus, that relentless commitment brings greater and greater benefits as we go forward. So I guess you could see it in a couple of different ways in the sense that the 25 years investment in feature function that allows us to incrementally add and change that as we go. That is a massive barrier to our competition. You just cannot recreate the depth and the breadth that we have in the feature function. In a previous slide of Everigo, trust me, it's categories we sell software in, we can do that because we've got the base. It's much easier to add to and to change than build from scratch. And then the revolutionary approach to technology. So much of what we've done recently with the creation of Infinity, the cloud first, cloud agnostic piece has been us building on investments we've made in technology in the prior 10 years. And trust me, we've got a world class technology group. I have no doubt about that. So people can run their software on the cloud, but can they leverage properly, fully that software on the cloud. So they can be cloud compatible, but are they truly cloud first? Does the software scale up and down immediately by chunk rather than just running a very large piece of software. So there's some revolutionary technology that we deployed and we continue to deploy that very regularly. So the cloud feels natural to us the way we build our own software. I'm going to talk about continuous deployment a bit later, but that's how we build software. We spin up instances in the cloud. We run hundreds of thousands of tests every night. And then that software is good to go the next day. So we do it every day. We'll soon be at a state where we can run it multiple times in a day. So when we talk about continuous deployment, it's merely the deployment of what we do in house taking that technology and allowing our clients to deploy it. 180,000 person days in 2018 will be more than 200,000 days this year because we have a commitment to grow the R and D group. So we'll put more days in this year than we did last, and we did more last year than we did the year before. There is so much for us to build out and build upon. That is something that feels very healthy to me. This ongoing commitment is just a daily event. So we could be talking about trade finance, we could be talking about corporate lending, we could be talking about funds administration. It doesn't really matter what it is. We are building something out either more depth or more breadth every day. That's our mindset. I wanted to try and capture the 6 drivers kind of on one page. So Infinity, the digital front office that can connect to any in house or legacy core. So they don't need to use T24 transact. Clearly, you get all sorts of benefits if you do. But that's why we're so excited about Infinity. It allows banks to take our commitment to open to transformational and take their and leave their existing back office where it is, leverage us, put differentiation, personalization into the front. And then as and when they're ready migrate their back office via a number of different methods to do that, which Alexia will talk about in a bit more detail later. But it does allow us, Max mentioned, a sale in Q4 last year. That was a platform play. The bank saw that it could take that digital transformation step and later in its own time take advantages more easily from the full terminal stack. So that's why we're so excited about the Infinity, the digital front office, which Daryl will come up and talk about. Clearly, we all know T24 Transact, the flagship leading core banking solution, massively scalable, deployable quickly and at very low cost. So banks that want to concentrate on huge volume, on manufacturing, ready made platform with huge depth and breadth of functionality. So they're the 2, if you will, core pieces. Then WellSuite, those of you who have been big in the well suite for a long time, that allows through the front office to differentiate and through the well back office huge efficiencies for the various relationship managers etcetera. So world class offering there. Payments, we built using the same architecture and design principles as T24 as it was at the time. Again, highly scalable, simple to implement, very flexible real time instant payments can be deployed as standalone payment solution against the normal incumbents, if you will, or embedded inside TRANZACT. So seen a lot of growth in that which we kind of expected because we knew the quality of what we were building some years ago. And then funds admin, any product type, any asset type across a highly scalable single platform. So again, as Max mentioned, a serious solution there. And then finally, all of this available on premise on through SaaS platform completely agnostic. If you want to use a particular provider for cloud, we're there. And as Max said, the ability to go active active across different cloud providers. So this kind of is the big picture, but this is where the investment goes, this ability to offer our customers choice. Banks, however small, however large, offer them the choice of the software they deploy on and the method by which they deploy. Something I've spoken to a number of you about and you'll be familiar with, but just to recap, the key to this is to have the core solution what we would call level 1. So that's the core of the system. That's applicable to any of our clients Wrapped around a model bank with a set of model bank procedures, which I think is now around 1,000 processes. So that's how the banks take the software and their initial deployment. Then what we would call level 2. So this is take the bank, but now we're in a specific zone location, so a country model, if you will, to allow the software to work as well in France or Germany or whatever. So that's the level 2. And then finally the bank specific pieces that usually are done by configuration or parameterization that allow the bank to make the software its own, if you will, in terms of the way it personalizes and differentiates to its clients. So that ability for us in a productized repeatable upgradable packaged approach, which allows all the investment to go into reusable products regardless of whether it's L1 or L2 is what's at the heart of this. It allows us to be live in over 100 countries and yet not have that enormous complexity of trying to maintain that. So very, very proud of that. That's something that's been in the system a long time. We've just productized that and make it look like L1 throughout that stack. So very pleased with that. It makes it very easy for our customers to deploy multi country solutions. Just a little bit about the investment. So clearly with the interaction with the market, we get input from literally hundreds of sources. So broadly, our customers will talk to us about do we offer this, could we offer this, etcetera, prospects when we're talking about the possibility for them to use our software, those kinds of things. Partners, another good source. And obviously, our staff, our staff are interacting in the market all the time coming back with ideas that the ways to innovate the products. We have the rational tool set which just allows us to capture those possible investments in the products to document those and then they go through a very rigorous process where we have a whole bunch of governance be that sort of daily, weekly, monthly, culminates in the product board. The product manager for that business thinks it's a good idea. They write a little vision and scope as we call it. If it gets through that, then there'll be a proper investment. This has gone through on a formal monthly basis with the C level of the company reviewing have we done what we said we would, but also what are the new investment opportunities we've identified. Does the company think these are the right things for us to invest in? So that 180,000 days to 200,000 days this year that is through this process, right? Taking inputs from wherever, putting it through a funnel, a proper documented productized process. And then the output, as I showed you in the previous diagram, could be L1, could be L2, could be something for a specific customer or it doesn't make the cut. And that process is happening around the world through the rational toolset on a daily basis. So that's how we make the investment decisions. That's how we decide where to place our bets as it were. I sort of talk a little bit about the continuous deployment. So having built all this great product how do banks make choices about the way they want to deploy that. So this continuous deployment as I say comes from our own processes in our labs. So we have a process, a unified Temenos process, UTP. And that basically takes our code, puts it through a development. The development process means you check the code every day. And then overnight, it is integrated and tested and is ready to deploy the next day. Now as I say, we're in a process now and that's about 4 hours. So should we want to, we can start to do this more than once a day. And that's how we've been building code for a while. Some years back, it's obvious that if you're going to deploy in cloud, the way you build code had to be more granular. You had to make smaller chunks, more discrete and more packaged. So we had to build a system like this. Now as we work more with banks, this is how banks want to deploy. So be that their own developers or code through UTP from us or from the marketplace or partners. This gives us the ability to build in the morning and consume in the afternoon. I don't know many banks yet that want to do that. But clearly, as we go forward, this idea that 6 months or 9 months is acceptable is clearly not acceptable. With the levels of investment and the need for change, the need for speed, this kind of model underpins pretty much any implementation methodology going forward. So we've taken what we do and we've productized that. And it's using cloud throughout. So it's virtual machines spinning up being used and then taken down for the testing. So we see this as happening now. Some banks are on this journey now. Others are looking closely at this as is this when will they use this, how will they use this. So this is kind of DevOps in the industry jargon brought to life and something we're very comfortable with, something we see as quite a natural extension to the way we take our code here ready to go. Bank wants to write through their deployment processes to a point of maybe UAT where they're ready to then take over and put it live. So this can be daily change or this can be batched into a week or a month. A number of banks we work with now want us to use this process for the codes there and then they're testing it. So we have a formal walk through every couple of weeks that kind of process. We talked about the Max talked about the 6 drivers. We've got somebody, usually a product guy or ODEC business leader, coming up to talk about them. Hopefully, you've got a bit of a flavor from previous TCF or whatever. So now we're going to go through each of these. And first up, it's Alex Dure. Thank you, Mark. Okay. Hi. So the core banking, it's our first driver of growth within Temenos and a historical one. What's a core banking system? In just a few words, this is the place where each and every financial institution is going to process their transactions and manage their positions. It's the heart of the bank in a way. This is a growing market. We estimate it to €5,000,000,000 and it keeps growing. It's been growing for years and it keeps growing. And our response to that is Temenos' 2 24 transact. The value proposition is very key nowadays. We're talking about digital transformation. It's to do it this transformation faster and cheaper via the core banking system through innovation and through package and integrated functionality. It's hard. You can't imagine how hard it is for our clients to transform to go along this digital transformation path. And we are here to help and we have all the credibility with this core banking software that we keep enhancing. In the next few slides, I'm not going to talk a lot about functionality, about retail or corporate banking, but more about the technology because this is the theme of the current years in the short term and also probably in the longer term. If you're following Temenos, you might be following some of our competitors as well and they've been here for quite a long time. There you have the global players, you have the regional players. And then quite recently, we've seen a flurry of new competitors, start up companies and entering the core banking market. It's very exciting for us because it gives us a boost to do even better than we used to do in the past because the old way of competing within Infosys and Oracle, okay, we know and usually we're quite good at that. But this new competition gives us an incentive to innovate even more. So if we compare against all of these players, some of them are global players, we are. Some of them are not. The starters by definition cannot be. Very few are cloud native. If you're a startup, you start with the right technology from the beginning. If you're a more established vendor, it's a lot of work to do to go to the new technology. We spent a lot of time reengineering T24 Transact to be cloud native. So we're bringing the best of both worlds into one system that's quite unique today on the market. Another differentiator is we're addressing all the market segments. We've been very good at handling retail banks, corporates, wealth managers, treasury, Islamic, Inclusive Banking. We're probably the only company who can do that. So we keep all the options open, and we want to keep growing wherever there is growth in the market. And that's quite unique. We've put a lot of effort into integrating our system. So these 6 drivers you will see us talking about today, we put a lot of money and technology in making sure that they talk to each other. And that's also a big difference to some of the competition who come with very different systems and then they don't talk to each other. And then it's a huge cost to integrate all of that. We make sure upfront that it's all pre integrated. And finally, maybe the I think a really key differentiator, we focus a lot on the long term upgradability of our system. We're selling a product. We're not selling services that people we're not selling consultants basically. We're selling a product something that people can keep and banks can keep upgrading year after year after year. If you buy T24 transact today, you know that in 20 years you'll be upgrading to release today plus 20 and it's going to work. Okay. So what's the market saying about all of this? The key focus nowadays is digital banking, right? This is where the main focus is in many banks Tier 1s down to Tier 4 and we'll have they're all focusing a lot about digital banking. But still the 2nd priority, I was going to say even surprisingly, people don't forget that for these things to work at the front, you need a proper digital real time core banking. So there is still a lot of investment plans by all of our prospects and clients into the core banking. If you go down to the bottom, the funny thing here is out of cloud services. So nowadays, it means that financial institutions still see this as a maybe 5th priority, while we think it's the foundation for everything else. We've talked about FUD a lot with Max, with Mark this morning. This is the foundation to transform all the banks from a traditional institution to digital companies. And I'll be talking about that. The things that Mark has been talking about is the path we've been through in terms of transforming our software to be cloud native, it's what banks need to follow now. We've been through this journey and we now have all the tools to help them go in that direction. What does it mean to be cloud native? And just a very few points. It means first of all, a bank, it's not an IT company. A bank is not supposed to be running 100 and thousands of machines and complex hardware and so on on premise. You have people who do that for you. You go to Amazon, you go to Google, you go to Microsoft or even Alibaba if you're in Asia. That's what these guys do and they do it much faster and cheaper and more securely than you do. So stop being IT companies, focus on banking. It's a mindset for a lot of banks. It means changing the hardware. It means also changing the way your organization is structured, not so much on maintenance and infrastructure, but more on creation and innovation. It's about changing the way you design your applications too. And that's for us as Timonos, it's been the where we spend the most time and we keep spending time making sure that our software is completely reengineered to work natively in the cloud. I'm not going to bore you with technical things like containers, microservices or distributed database, but that's how it works. You need your software to be nimble, to be more componentized so that it's easily interchangeable and it runs faster. This is the secret behind in other verticals like the Amazons or the Netflix of this world. They have super cool user interactions. But in the background, you have also super cool core technology that runs along the same principles. And that's what we want to bring to our clients to the banks. A consequence of that, once you have this technology in place, you can really become an innovation company. DevOps, Marc explained briefly the notion of continuous deployment, continuous integration. It means that nowadays you can very easily launch new products on the market. With T24 Transact, it's always been very easy to create new products. But what really happens in the reality, you launch this you create the stuff in T24. It takes a few hours, let's say, a few days if it's a bit more complex. And then what? You wait 6 months until it goes into production because it's banking, because you need to test and retest and re retest to make sure that it works. So you're wasting all this time. You have this brand cool idea. You have the software that allows you to implement it, but still you're wasting months to be able to release it to the market. DevOps, continuous integration, continuous deployment is the way to automate all of that, to automate all these tests. You push a button, you get your environment. If you want to do, you push another button. It goes into this whole testing cycle. It's all automated, 100 of thousands of tests. And then you're ready to ship it to your production environment. And that's how the other industries are working. That's how the Amazons and the Netflix of this world work. And that's what we are now we've been through it ourselves and that's where we're now ready to offer to our banks as a service. And finally, we talk a lot about APIs. Yes, we're going to implement this core banking within another environment, which has its own complexity, other systems that the banks are going to keep. And we need to make sure that we can integrate with these with all these systems. So we've changed the mentality from point to point interface to actually APIs, open APIs. We have a developer portal where we publish all these APIs using standard technology. And again, it's not technology for the sake of technology. It's to make sure that this is going to be faster and cheaper for the banks. A few numbers because we like numbers. The business value, some examples. The tip of the iceberg is first of all to reduce infrastructure costs, okay, by 3 times, 6 times, 10 times, I don't know. If you move all your IT infrastructure to the cloud, this is the kind of savings you can achieve. But further down the road, once you become an innovation company, you can also increase as a bank, you can easily increase your revenue by 15% to 20% simply because you can innovate faster. You're launching new ideas faster. Therefore, you grow faster. Therefore, the next idea will come even faster and so on and so forth. And in terms of orders of magnitude, let's say, we've been running some tests when moving to a microservice creating new microservices. And some of these things they worked 100 times faster than they used to. So it's really the technology enabler of banking. This is the short term, medium term. The next few years, we're driving this change across the banking industry. In the long term, the fundamentals don't change. We have the breadth and depth. It's still there across retail, corporate, our country model banks. That's not changing. We keep investing and we want to keep the leads in the market. We innovate a lot. We're talking about that. One thing not to forget is choice. We have 100 and 1000 of clients. If we consider all the products, we still want to give them choice. We're not going to scare anybody saying you need to move to the cloud now. Can remain on premise. We give you an upgrade path. You want to go private cloud, you can go on a private cloud. You want to go public cloud, you can go public cloud. We keep all the options open because we want to capture the entire market not just a few technologists out there. And finally, we're stable. There's new competition coming our way. They have yet to prove what they can do, whereas we know we've been through a number of financial crisis, market changes and so on and we know we have the right structure and the right products to achieve that. So I've been talking about the heart of banking, which is the core banking. Let's talk now about one of the brains of it, which is the front office with Darryl. Thank you, Alex. Thank you so much. Good morning, everybody. So how do I follow that? I follow by telling you that a heart of the bank is called banking, but how a bank sells its product is through the software that we enable a bank to do that. And that's Temenos Infinity. Temenos Infinity allows the bank to sell its product. If a bank can't sell its products, it's not going to survive. Same as if we don't sell our product, it won't survive. Infinity gives them that ability to market their products, to acquire new customers and also to service those customers in a digital world. And that's very, very important today. It has to be cheap. It has to be digital. And it has to be digital end to end. It's a huge market, as Max said. It's a big it's a growing market. It's growing at a fast pace. And the way that we service that through our value proposition is to deliver an omnichannel platform that's enabled by APIs. So we don't look constrained. We have to have the ability to talk to FinTech Partners. We have to have the ability to talk to any core banking engine, including T24 Transact. But Infinity differentiates itself by leveraging the 25 years of knowledge that we've had in core banking. It's not just about putting a wrapper and hoping that, that wrapper has something that understands banking and it's about utilizing the knowledge that we have in banking in Terminals and making sure that as we allow a bank or enable a bank to sell its customers, that the customer of the bank understands that the bank knows what it's talking about. It's not just that thin layer that sits on top. And that's really where we compete. We're full front to back digital. That's where the sweet spot lies. If a bank can service its customers 20 fourseven, 365 digitally end to end, you're not worrying about close of business process, you're not worrying about that. It means that the digital side, all the way through to the end, is looked after. It crosses all of the banking verticals as well. So wealth management, corporate banking, SMEs, mass affluent. It covers everything in terms of banking. So Temenos Infinity has to enable a bank to service any customer that a bank may have. And with the acquisition of Evoca that Max spoke about earlier on, it allows us to utilize best of breed acquiring technology. So on boarding a customer, cross selling to that customer is massively important. And you'll be surprised how hard it is to get a journey of a customer right. From understanding what the customer wants to bringing them into the bank is a very hard thing. If you put a field in the wrong place, the customer will abandon that journey. That's really important. That's important about understanding how you use the software. We all use our bank on a day to day basis on our mobiles. We want the bank to be in your pocket. We want the bank to be in the corporate's pocket all of the time. And that's really what it is. Infinity is the window in the door to the bank. This is how the bank gets their customers from marketing to them around products. And marketing isn't putting products on a web page and saying, oh, let's hope the client understands what he wants. It's about doing a needs analysis. It's about bringing them down, filtering them through a decision tree to understand what product they want for, the needs that they have at that very moment. But once you have marketed to them, you have to be able to take them through the journey to be able to service that product, get them to buy that product from the bank. That's the key part. That's making sure that it's easy for the client to utilize the software. And then once you have them, if you don't do a good job in servicing them, you're going to lose them. So you have to do a good job in your omnichannel solution so that you can retain the client and ultimately upsell more product. That's the enablement of a bank. That's the door and the window to the bank for their own customers as well as new customers to the bank. And of course, supporting all of that, as I said, is the embedded T24 transact. That's digital end to end journey. But we can also operate with multiple core other core banking software, different pieces of technology that may exist in a bank. That infrastructure, that ecosystem that a bank has, Thermos Infinity services that. And why do we need to service that? And if you look at the way a bank traditionally manages its digital front office, it's something like this. Multiple siloed systems sitting at the back. They try and create a customer experience layer that sort of sits between that, and then they try and expose it via the channel. I've heard of banks telling you that they give their client a separate login for to look at their credit card versus looking at their accounts. You can't do that today. You need that one place where everything goes, but you need to understand the banking that sits underneath it. So the ability to look at and abstract some of that function, some of that understanding of banking products as what Temenos Infinity does. It extracts from that the business logic so that your product catalog that a bank have the manufacturing part is distributed cleverly, intelligently and across any channel. Because you don't want a client to walk into a branch today and then go home and look and it's in Internet and can't continue that journey. It has to be omnichannel, but you have to understand across all of channel the banking business that goes with that. And this really is the big picture. So this is the big picture of Temenos Infinity. What does this picture mean? It means at the heart of Temenos Infinity is how we service the customer. That's the CRM capability. It's the ability to take the client and lead him through a decision, a digital decision journey. What am I doing at my life stage right now? Am I buying a car? Am I getting married? Am I having a child? That's a decision that may result in a financial implication, allowing him to choose a product carefully through a marketing catalog that's abstracted from the core banking engines. And using the workflow to do that and understanding what the engagement of the client might mean, real time engagement with the client is incredibly important. If I am looking at a piece of software or if I'm looking at my bank today and I'm looking at the different loans, there's a sitting underneath all of this is data driven. So being able to make the client a customer of 1, we do that with analytics. So sitting underneath all of this is data driven journeys doing it. And what's the product I want to market to their client as a result? Don't offer me a personal loan if I put in, I want a 25 year loan for a house. And you'll be surprised how often a banner will come up on your Internet banking that has absolutely no relevance to what you're doing at that time. Infinity takes that away. So we allow the client to use the software based on what they're doing at the time. Taking them through the sales process and then, of course, the servicing. The servicing is as important, if not more. Cross selling to an existing client is a lot cheaper than acquiring a new client for a bank. So being able to aggregate accounts across different banks, hugely important today. If I can see all my accounts at my bank, regardless of where I bank, and remember, a corporate can have thousands of accounts, it means that I'm more likely to buy product from you. I'm more likely to use that bank to buy product. That's what Temenos Infinity enables. It enables the heart of the bank to breathe, to run and run as fast as it can to innovate, to change the products that they offer very quickly. A digital solution has to be able to change. It has to be agile for a bank. And we do that through configuration, abstracting banking knowledge from the core banking engine and delivering it to the banks to enable them to sell to their customers. Surprisingly, when you're using a digital engine or a front office, a lot of what a client does is payments. It's one of the most important parts of a digital front office solution. So being able to do payments front to back, hugely important. So with that, one of the other drivers I'm going to hand over to is Sujata to talk about payments. Good morning, everyone. As you can see, payments is a big market opportunity with a $2,700,000,000 tech spend and growing at 10% annually. With Temenos Payments, we offer a centralized payments up for banks of any size processing real time payments from any channel or source. Here's a quick view of our competitive landscape, how we compare or stack up against our competitors, mainly payment specialist vendors, and we compare quite favorably. We have a global presence with customers spread across all geographies. Multi product, we are multi product become pre integrated with Temenos products, financial crime mitigation, Temenos analytics and compliance modules. Universal payment process is our big strength. We can process any type of payment through a single workflow. And hence, we have a single solution processing high volume retail payments and high value corporate payments. It delivers big efficiencies and ease of maintenance to our clients. And with our extensive partner ecosystem, we can deliver seamlessly anywhere across the world. Coming to the market drivers. Payments market is in the midst of a significant disruption, and the pace of payment volumes with non cash transactions growing at 10%, 13% annually. The rise of open banking is resulting in increased competition from the fintechs and the big techs. Banks are driven to expose their services to third parties via open APIs. And instant payments is becoming mainstream with several countries across the globe adopting this scheme. ISO 20,022 is fast emerging as a global standard in financial messaging. And last but not the least, customer expectations have increased manyfold. Payments is the only product that every customer of the bank uses almost every day, and customers expect frictionless payments that are speedy, secure and convenient. Hence, to protect their position in the value chain and to retain their customers, banks' payments transformation has become a priority amongst banks. Banks need a modern payment solution. With Temenos Payments, our holistic and scalable payment solution, we are excellently placed to tap into this big market opportunity. We have a range of proven products covering the entire payments life cycle from payment initiation through to compliance and analytics. Payment order helps in seamless journeys, customer journeys across all the channels. Temenos Payments Hub is our universal solution for efficient and high straight through processing. With our flexible configuration, we allow banks to change their payment processing rules on the fly, and it delivers very high agility and speed to market in bringing new products to their end customers. And the payment repair, it's an advanced engine for intelligent repairs, and it further enhances our straight through processing rates. All these products are designed to work separately as well as together, providing the flexibility to tailor a payment solution specific to our clients' requirements. And we also offer the widest range of deployment options to our clients. Temenos payments can come embedded with T24 transact and operate like a single solution, or it can be deployed stand alone with any third party core banking solution. And the standalone mode is a significant game changer for us because you can deploy T-twenty 4 Temnos payments without T-twenty 4 transact. A bank need not have T-twenty 4 transact to deploy Temnos payments. And we also offer our clients the option of deploying the solution on premise or on the cloud. Given the strong payment proposition, we are quite well received by market analysts. We are the best selling payment solution right now. We won the FS Tech Award for Payment Innovation in 2018, and we are also very well rated in vendor assessments. A big proof point of our strong payment proposition is the client uptake in the last 3 years. We went live with our first client, ABN AMRO Bank, in 2015. In 2016, we added 2 more clients. In 2017, we had 7 more. And in 2018, we won 17 new clients. Finally, it's been quite heartening for us to see the kind of strong growth and recognition we have received in the market, and we expect the strong growth momentum to continue through 'nineteen, 'twenty and beyond. Thank you. Thank you very much, everyone. Amazingly, we're about 5 minutes ahead of time. So thanks very much to the product team for that. We'll break for coffee now. So I forgot to ask you to make your way back upstairs either lifts or the stairs on either side of the venue to the room we're in for the breakfast and registration and to be back down here for 11:30 a. M. To start the second half of the product session. Just a quick note for anyone who hasn't found the presentation yet. It is available on our website on the Investor Relations section of the website under the Capital Markets Day tab. Let me know if you're struggling to access that at all, but it's on the website. See you shortly. Thank you. Welcome back, everyone. I think we'll just push straight on with the second half of the product session. We'll then be having the session on implementation and partners, and then we'll have Ilhan from Bank Lumi on stage as well. So I think with no further ado, I'll hand straight over to Pierre, who's going to talk you through our wealth offering. Good morning. So wealth is a quite generic term. So the way I think it's easy to define is wealth is really the solutions banks use to service the investment needs of their customers, whether they are retail, mass affluent or ultrahigh net worth individuals. The medium term spend is for the front office wells only is €0.6 billion. We have a growth rate of 8%. Our product or offering or product offering is called Temenos Well Suite. And I think the real the key value proposition of Temenos Well Suite is really being able to deliver best of breed components in area of Poetry Management, CRM and core banking and to deliver them as an omnichannel solutions for retail, mass affluent and infra I networks, whether they are, of course, bank users or clients and advisers. It's a quite competitive market, and I'm sure you know some of those almost all of our competitors. I just would like to highlight 2 of key elements and 2 of our key differentiator against those competitors. The first one is our multi component approach. We're really able to deliver to those people, to our banks, to our customers. If they want to just implement a front office, they can implement a front office. They want a core banking, they can implement a core banking. Of course, they want to have the full solutions, they can have the full solutions. But even when as an example, if you're looking at implementing a front office, if a bank has a need for just a portfolio performance engine, we are able to deliver that just a portfolio performance engine. So we can really go to quite a lot of details and detailed components, and that's very important. The second important element is multi segment. A lot of banks today, I'm sure, wants to basically leverage on some economies of sales. They want to run on one platform, their retail business, their corporate business and their private banking business, their wealth business. I think we're unique. There's not a lot of there's no other solutions that can really deliver all of this on a single platform. And that's really 2 important differentiators. Those differentiators, together with continuous investment we do in our products, are delivering us growth opportunities in 2 different streams that we can segregate in 2 different streams. The first one is in the traditional, I would say, private banking wealth management business we have. The second is more on the mass affluent and the retail markets. Now we'd like to come and spend a bit of time on this offer for the mass affluent retail markets. If you look at some numbers, I think from the high end of the retail people, so the people that have probably around the $5,000 up to really the mass affluent and the low end of the high net worth, so the people that are a bit below the $1,000,000 that represents 53% of the world's wealth. That's a huge amount of money. And quite often, a part a big part of this segment was mentioned as being the lost segment or people are also talking about unserved people. In the past, it was too expensive for retail banks to serve those people. And for private banks, the revenue were not interesting enough. So those people were left behind. Now of course, there's 2 important elements that have changed that. Technology is 1 and the customer behavior is another one. So banks needs to deliver on that segment. And specifically for that segment, we have launched last year a new module called the Robo Advisor, quite famous. And all of those modules are really tailored and targeting for the mass affluent retail people. You can act customers can act on their own. In a world of digital, they can play, they can work. They don't need to necessarily talk all the time to a relationship managers. They can do all of this on their own. This year, we've launched a second module quite tied to it, which is goal based investing. Again, quite important, this market of the mass affluent are the new generations of people who want to invest. They're not really interesting by receiving a message like, my the funds I'm proposing you does a better performance than my competitor funds. That's not what they're looking for. What they're looking for is the ability and services that will say, well, I'm ready to invest a certain amount of money today. I know I will be able to spend more money in the future. But with all of this and if I'm following the right strategy, if I'm following the right model, am I able to achieve a goal in maybe 5 or 10 years' time? Will I be able to acquire a holiday home in 10 years' time? That's what they're looking for, and that's the service they're looking for. That's what we deliver with those new modules. You will tell me probably that there's quite a lot of fintechs doing all of those things. I mean we have key differentiator against those fintechs. First of all, those two modules are completely embedded with other solutions. So it's we've talked that briefly in previous presentation. It's fully API driven. All of this is available through APIs. It's completely embedded also with the T24 transact side. So not only when you define your goal and when you set them and say, well, I want to invest $1,000 today and I want to spare $100 on a monthly basis. Well, behind, everything will be set up automatically. Transfer will be done. Sending orders will be automatically put in place. All of those things is embedded. This is deleveraged with the Monte Carlo simulation engines allowing to really forecast those different revenues. I mean, all of those important elements are key and are key differentiators when we offer those to retail banks and to mass affluent people. Of course, you can also look at the goal based investing, not only the mass affluent or retail, it also coped with a more hybrid mode because it's perfectly available also for, of course, more private and ultrahigh net worth individual, where in this case, there's probably a bit more relationship between the relationship managers and these customers to define the goal. So we cope with all of those different elements. And at the end, of course, when the orders are generated out of the rebalancing in the Robo Advisor tool, it's full STP. Orders are placed on the market, executions are done, settlements are done and the portfolios are all updated. All of this is quite key and clearly differentiators against what you find probably with some fintechs today in the market. We've also spent quite a lot of investments in terms of two main development. The first one is around tax slots. Tax slot is really the ability for relationship managers or portfolio managers to really manage this portfolio and run a lot of different analysis taking into considerations the tax impact. That's valid for portfolio analysis, but it's of course, it's also valid when you're dealing with ordering, with rebalancing, taking into account things like harvesting, wash sales that are quite, quite important in the U. S. Of course, this development was very important for us. We have a clear focus on 2 countries to start with, the U. S. And Australia. Max has mentioned about the expansions within the U. S. That was a key element for us to expand and to support these expansions within the wealth market in the U. S. As well. Next to those tax slots, we've done we've also done a series of developments around country model banks. So country model banks, William West, really embed and package a series of regulation rules, but also sometimes, I would say, best practice in some countries. We all know that regulations could be understood a bit differently from one bank to another. So typically, what we offer with those country model banks is really prepackaged rules that banks can tailor make to their needs or to their understanding of their regulations in order to have a very fast implementation and being able to cope quickly with all of those new regulations. So those two elements were quite important in order for us to expand in our traditional market into which is the wealth and the private banking, but into new countries, the U. S. And Australia. And the country model bank is also available today supporting a series of important countries like some of them in Asia, others in Europe. That's my I'm happy to discuss more on those things with you during the break. But now I'm inviting Odette talking about fund administrations. Good to see you. Hello, everyone. For the advice, I'm originally from Israel. I joined the Temenos family about 4 years ago when Temenos bought my company, Multi Funds, and I'm going to tell you about the fund administration business. So first, we're going to start just a little bit about the market. What is fund administration? It's basically the back office of the asset managers. Most time, it's done by 3rd party administrators, banks. It's a large market, and we have a very unique value proposition across asset classes, across jurisdictions, and that's basically what we do. If you think about the Wall Street Journal Financial Times, when you see the values of the mutual funds, we calculate those, the net asset values. Let's talk about the landscape. So I'm going to try to use this laser. We have SS and C, SimCorp, FIS, they bought SunGard and Light Data. As you can see, we think very highly of them. And then in terms of the things that makes us unique, it's really the global presence, the cross asset. But in the past few years, we invested a lot of time, but integrated workflow, automation, controls, making the system very straight through, transition the work of the back office from being pushing papers to actually using a tool that is very, very efficient. And we are the only one that's offering today integrated ETF, we think, is a very important asset class. It's growing, and it's part of our solution. Now when we think about the fund service markets, first, there's the asset managers, about 40,000 of them globally, almost $80,000,000,000,000 in assets. These are the BlackRock, Allianz, Aberdeen, etcetera. And 75% of the back office is outsourced. So think about CHF 80,000,000,000,000 assets under management and about CHF 60,000,000,000,000 asset under administration. And what is outsourced? So obviously, the market data, order management, this is not outsourced. This is in house. The middle office, fund accounting, transfer agency, a large part of it is outsourced. The banks, where you see there, like BNP, Citi, RBC, they provide those services. They charge basis points. It's about $33,000,000,000 revenue. Those 3rd party administrators were our target markets. We see them as aggregators, they grow and they spend a lot of money on technology. Now in terms of technology markets, so you have the area of the market data and the order management. This is where the Bloomberg, Charles River, Thomson Reuters play. These are the data providers, the order management providers. Now if you think about the 3rd party administrator, they get the trade files after the trade is made. They don't do the trading. They just get the trade files. In the back office, obviously, there's us and the other competitors that we mentioned. So this is how the market looks like. And as I said, we've always been focused on the 3rd party administrators. In Accounting is net asset value calculation. Accounting is net asset value calculation. Transfer agency is shareholder keeping of the records of the actual holders. Now if you think about the accounting business, we've been around 35 jurisdictions. We cover ETF, and we have 10 sales and presales specialists focused on the accounting business. Transfer agency across 20 jurisdictions globally enforced sales and presales specialists. On the 3rd party administrators, this is where our strength. We have about 35 clients. We serve 7 of the top 10. And but we do have also a few asset managers, clients in North America, Asia and Europe. Now it all goes well in that industry. The 3rd party administrators provide the service to the asset managers, but there are challenges. Regulation, pressure on fees and costs, need for greater risk and transparency, they are all well known. The one concern in that industry that has been very difficult to tackle is how do you manage the relationship with your outsourcers. There have been many outages in the past 20 years. The most famous one mentioned here is the Bank of New York using a SunGard platform, missed calculate funds for 1200 funds. And for over a week, they could not provide value. You can imagine the market impacts of that. And the regulators constantly put tremendous pressure on the asset managers. You have to do something about it. There's the famous Dear CEO letter, went to all asset managers saying, we are concerned. But the problem was that you have an administrator. And to use 2 is quite expensive. As I remember, they charge basis points. They charge quite a lot of money. It's quite complicated. So there wasn't really a solution for contingency, for what happened if your administrator cannot provide the data? What happened if your administrator make mistakes? They do. And many times, they have to write checks to compensate the asset managers, but that's not a great solution. So as some of you heard, we signed a very important partnership with Bloomberg earlier this year to basically address this problem, the problem of contingency and oversight for the asset managers. Let's talk about the product. We call it Navigator. And first, it's independent of the 3rd party administrator. They calculate it using data from different source. So it provides real checks and balances versus the numbers they get from the administrator. Secondly, it's very easy to implement. You basically turn it on. If I think about the normal implementation of accounting system, it's always like I used to be in the special forces. You bring the technical people, the functional people, the project manager. And it's a big project. Here, it's on the Bloomberg terminal. It's there. It's available. You want it on Monday, you have it. Now in every partnership, each one of the partners needs to contribute something, right? So what Bloomberg is doing here, they provide the sales, they are selling the product. They have 900 asset managers, clients that are using the Bloomberg Order Management, AIM. They have 350,000 terminals and about 2,000 generally sales force, about a third of them will be focusing on creating opportunities for us, and they have about 180 sales specialists in the asset management world. So you can imagine the impact of that. They will provide customer support, and it's all delivered via the Bloomberg terminal. We first provide, obviously, the product, the brains, the accounting engine. We train the sales force. This is happening right now in London and New York. We will provide presales support for very large opportunities, €500,000,000,000 and up, and we continue and maintain the product. And the target is those 40,000 asset managers. So this is quite an exciting opportunity for us and an amazing partnership with Bloomberg. And in terms of the plan ahead, so last year, we spent time on the planning and design, negotiated Max and I had a lot of fun, negotiated the agreement with Bloomberg and get it all done. We are now finished integration with the Bloomberg network. The sales force training is happening these weeks. Marketing material is done. And as of next week, we are starting proof of concept with multiple customers. Second half of the year, full speed to market. And the last point that I will leave you with, you see here, it's a screenshot of Bloomberg terminal. And here in the bottom, it's basically powered by terminals. So we didn't allow to be a white label. It was very important for us that our product is out there in the market and we're going to change the industry. Thank you very much. Andrew, Mr. Cloud, all yours. Thank you, Ode. Okay. So covering now the very the 6th growth area, which is the cloud and the SaaS offering. So my name is Andrew Reeves. What we're talking about here is so you've heard a lot about cloud for all the presentations, around all the investments we've been doing in cloud agnostic, cloud native technology, etcetera. And that all comes together here in the Telnos cloud and SaaS story that Telnos has. So this is where we enable our clients to utilize those capabilities of our products, to utilize that investment and to go and utilize cloud technology to help them achieve business outcomes, to help them drive their digital strategies, to help them be innovative in their marketplaces, to help them grow their businesses in new territories. Lots and lots of different use cases where cloud really resonates and we're seeing that growth and success story. If we look at our competitive landscape, it's something that's very rapidly changing. So we have our traditional competitors that we'd normally be facing in a traditional on premise, and we now have other competitors coming through. So new start type organizations who are entering the market trying to compete. And also banks themselves who are playing fintechs and then offering services out or fintechs playing the role of a bank. So it's a very, very changing landscape. But what's really key, again as you can see here, is the way in which we're investing and the way in which we're enabling to optimize the use. So through open APIs, through the cloud native capabilities, etcetera. Our regional presence is a really key differentiator for us. A lot of these small organizations don't yet have the footprint in all the different countries and territories that Temenos does. And we're seeing that as something that's very much valued by our clients and the market. But what's really, really critical and what's the key differentiator is our history, is the breadth and depth of our experience in delivering cloud. And this isn't sort of the peripheral systems, this is we put a core banking with the 1st ISV to put a core banking system up on the public cloud back in 2011. So we have over 8 years of history in delivering cloud services. And what we've seen over that time, and Max spoke about that really rapid acceleration recently, is that the market is now starting to move. The market is now starting to make that shift towards cloud and the use of cloud technology that we've seen in other markets. And that's being driven by a number of factors. It's being driven largely by changes in the regulatory landscape. So we're seeing more and more regulators issuing guidance out to banks for how they can utilize. It's an outsourcing service at the end of the day, but how they can do that in a safe secure way using cloud type technology. And we've seen that change on a country by country basis, but also here in Europe we have the Financial Conduct Authority issuing specific guidance. That was then followed by the European Banking Authority. Luxembourg, FINMA in Switzerland most recently has issued specific guidance to help banks make this transition. Over in APAC, we're seeing regulators using cloud to help drive competition in their markets. So we're starting to see neo banks entering. So Volt, Judo Bank in Australia are great examples of banks who are entering the market to disrupt, to offer new services, to be more innovative, more able to meet the needs of a digital economy than some of the larger banks who are sort of encumbered by more legacy type technology, who can't react as quickly. So it's a very, very rapidly changing landscape. What we're also seeing is changes in the way that banks are using the cloud. So very much it was a private cloud, banks still want to have control or more control of their cloud platform. We're starting to see that shift towards public cloud. We're starting to see banks realize that the billions of investment that the Azure, Microsofts, the AWSs, the Googles, the Alibabas are putting into their cloud technology platforms, into the security of those, into the evolution of services that allow you to manage and operate those more effectively is again a key change in the market. Now we know that some banks will still go down a private cloud route. And the different ways in which we can support that through our cloud agnostic cloud native technology means that they can still optimize their use of private cloud just as much as public cloud. They can still elastically scale our software to meet different changing business needs. They can still provide an open ecosystem allowing third parties to connect in and utilize services that they want to provide out that can drive fintechs, that can drive innovation through those types of offerings as well. So we're seeing that change happening. We're seeing an ongoing growth. So 15 just over 15% growth in public cloud services. We're seeing more companies looking to utilize these types of offerings. So if we then look at there's a lot of information on the slides, I'll talk you through the main sort of key points. If we look at our addressable market, you can sort of segregate it into these 4 quadrants, so by size of bank. And I think probably over 2, 3 years ago, it was the smaller banks that were looking to utilize cloud. It was the banks who didn't want to have to work out how to run the software themselves. They didn't want large IT departments. They wanted to be able to focus on the business. They were often probably more non regulated, smaller community type focused banks, etcetera. So a great use case for the services we offer, being able to outsource to us, fully managed service. So we've engaged with the cloud platform provider. They don't have to go and form that relationship. We're running it as a managed service offering. We're keeping the software updated, maintained, monitoring it, running close of business. It's not a full BPO type model, but we're looking after the software platform on behalf of our clients. But we've then started to see larger banks looking to take that. And this is where the Telnos continuous deployment type offering really comes into play. So banks who maybe aren't yet ready to put their production systems on the cloud, but want a more cost effective way to be able to drive change, to be able to take the new releases of software from Temenos to bring in their own developments and customizations around their own ecosystems and do that in a very seamless rapid way. More multiple deployments, more releases, more frequently, more incremental change into their environments to allow them to react to different market conditions to launch new services. So we're seeing larger clients, ABN AMRO being the use case here, who've taken that offering. Now again, we're offering choice. So they can take that offering from us. They can either create those cloud environments, the test environments using a cloud provider of their choice within their own subscription or they can use the Temenos cloud to do that as well. So again, if they don't want to have to go and engage with the cloud provider directly, they can utilize our relationship to be able to do that. We then come across into the more exciting area, the innovative, the innovators, the people really driving changes in our market. I think this is really where we see a lot of movement and a lot of excitement. So again, the smaller organizations, the Judos, the Vaults entering the market, focusing on a very particular area, driving change, competing with the larger incumbents. And then through to larger ones, again, more open banks. So again, utilizing Temoz cloud technology, in this case with a direct relationship with a cloud provider, but utilizing our technology to drive forward with changes in their particular markets. It's a really exciting space. It's very, very rapidly evolving. But I think as you've seen from the growth trajectory we're seeing, it's now something that's very much starting to change in the financial services industry in our space. We've talked about this briefly. So again, just to be clear on the different service offerings we can provide. So on the left hand here, extend and assemble, there's a box that goes around these, is the terminals continuous deployment offering. So that ability to take the terminals software, extend it to meet your specific needs, assemble then together your particular changes customizations together with the items being delivered by Temenos and do that in a regression continuous regression type way. You don't have to have your run on Temenos Cloud or even on Cloud. Obviously, it optimizes your left to right journey if you do, but it's an offering that's there and available for people to use. Then in the deliver space is where we're seeing a lot of changes. So we're seeing a shift again from banks looking to have again sort of a more customized offering to banks looking for a much prepackaged solution. So something where they can get that speed to market for something there that's geared for their industry, preconfigured with a model bank that helps them meet their specific regulatory requirements or interfaces to their specific ecosystem partners and also provides out of the box functionality about the key products that they can then personalize to their particular market and then launch out into there in a very, very quick succession. So that's where we think the future is going is towards more of a public cloud and more of a standardized package model, but still with our ability to customize that digital front end experience that the client wants to have with their customers. So just to wrap up, I think Temenos really has, and I think you've heard it in all of the different presentations today, not just mine. Telos has a really unique position in the market. We have got 25 years of investment and experience in focusing purely on banking software, yes? A lot of these new entrants coming in are almost creating the new legacy. I think the key differentiator Temenos has is constant innovation, that constant R and D is allowing us to keep on top of the market, is allowing us to adapt to changes in technology and offer those services out. So that breadth of functionality, the ability to be cloud agnostic, cloud native, utilizing the an active active type scenario, places us in a very, very strong unique position. Okay. With that, that concludes the 6 key growth drivers. I'd now like to hand over to Alexa, our Chief Client Officer. Thank you. Good morning, everyone. I think we've heard a lot this morning, obviously, from Max and from all of my colleagues about the market and how we respond to that with our products. Obviously, all this needs to come together into delivering the value to our clients, so implementing this at our clients. I'm going to come back to this slide. You've seen it from Max. The idea behind this though is not to be bragging or being arrogant, but we have done a lot of those. We have seen a lot. And if we pause at some point this year and said, okay, it's about time that we wrap this up into a strategy that we think would work rather than adopt standard strategies from the market, which might not take into account how far we've come and what we have done already to deliver projects to our clients. With over 700 clients in core banking, obviously, we've seen a lot of transformation. I say that to all the CIOs, CEOs we meet. I mean, they're lucky if they've done 1. If they've done 2 transformation, by then they're probably exhausted. They don't want to do another one. We've seen about 700. If you accelerate this with all the go lives we've seen, we're going to reach somewhere around 1500 by the end of this year for since 2018, so in 8 years. That's quite a lot of experience, different size of banks, small, big, different type of deployments, obviously, leveraging our new technology. So that's something we can also bring. Consultants and partners helping us implement. We have about 6,000 people in our ecosystem. That ranges from our own consultants, obviously. That's about 1,000 of that number. The rest is our vast ecosystem. They also see transformation. They also see how customers are using our solutions and bring back experience on how we can do things differently. All of them obviously belong to our wide network of partners, about 30 SI partners, so systems integrator, which bring also their own best practice and we can combine that together. So really with that we felt okay, we see a lot. We have a lot of people coming to us and inquiring how do I transform the bank. And they all have similar type of concerns. It's difficult. They find it something quite complex. They're all interested in. They all know they have to do something, but they all face similar size similar types of problems. The first thing is the market reality. You look at your bank and you say, okay, I need to transform. I need to be more modern. I need to be able to enter new market. I need to be able to gain market share, whatever your goals may be or the bank goals may be. However, everybody here has heard about high profile failures. And yes, it's 1 once in a while, but when you're a bank, that's already too much. So that's a question you have to ask yourself. Do I want to embark on this? Or do I just put a plaster or band aid on my current system and let it run? Somebody else will take care of it. Outages, we've heard those as well. Bank goes down, it's in the market. There's usually news being relayed on this and concerns. So again, do I really want to go there? The C level tenure overall doesn't encourage you to do this. If you have a CEO in a bank, a CIO, a CTO, very often the appetite for taking embarking on something that is seen as risky might be slightly less than what we would think. And again, the plaster solution comes in. It might be easier. Short term thinking, obviously, they have a problem now. They want to fix it now. When you think core banking transformation and bank transformation, you have a longer horizon. Not everybody is able to do that. To this, you add the what they hear or what they perceive as the problem of those transformation, the cost. Again, lots of reports everywhere. And you in the room, some of you produced those reports saying how much it costs, how expensive it's been, how disrupted the organization of the bank it has been. So and then those progressive implementation that seem to go on for a long time. You hear that they've done a little bit and then a little bit and another bit. So unless we're able to bring to them time to value, it's very difficult for them. So what they're really coming to us with is okay, very interested. We need to do something. We're coming at the end of this cycle of our system that was built in the '60s or assembled in the '70s with other systems. But how can we make it that we have a better time to value obviously? How can new Temenos help us build the business case that's going to stand on its 2 feet? Because if not, the chances of going to a board and asking for several tens of 1,000,000 or several 100 of 1,000,000 in some cases is not going to fly. And then lastly, we can't introduce risk. So putting all of these parameters together, we said, okay, as we've just seen, we've done a lot. We've introduced a lot of new products. We've introduced a lot of new technology. How do we leverage this? We've tried to calculate this. We've tried to figure out what it could mean. And this is basically by taking all the technology and all the products we've introduced to the market recently and all the clients' experience. So if we try to combine best in class of all our clients that could be a combination of several clients' results, if you look at it, on all the leverage they can have on the various aspect of their transformation journey, you can see that you can dramatically reduce the overall implementation time. Obviously, implementation time means cost. So if you look at things, usually there are some areas where it's difficult to interact. The ongoing operational cost, if you don't do anything, it's difficult to move. But now with the introduction of cloud and the fact that your infrastructure can go as much as 10 times down from what Alex said this morning, there's a leverage. There's something you can do to reduce that pillar. Change program. Again, might not always be able to change a lot, but it's a once journey. So fine, you don't move it too much. It's okay. Comes the next one, which is the software. Obviously, the more package, the better it is. But again, there is a one time cost. Or with the new methods and the new services, you can transform that into OpEx if you want to. Now you're able to do that. Then you come to the really the 2 parts where we think we can introduce significant improvements to the time lines and then to the cost of transformation. The first one is configuration and deployment. We talked a lot. I mean, Alex talked about it and many of us in the room talked about this constant innovation and this DevOps concept. Everybody talks DevOps. It's been going on for, we have to say, about 2 years. And we see 2 to 5. We see a lot of different version of it. And it's all it is all around automation, but what we offer is more than automation. What we offer is really, of course, automation, but continuous improvement, continuous renovation, continuous change of your bank. And that brings in itself this box, which is quite costly of continuation and deployment much more down. Why? Because you bring value constantly. So you don't have a pause with massive investment, nothing happens and then you see that coming through your books. We constantly introduce changes, constantly are able to show to the stakeholders how this can impact their system. Finally, the integration, we talked a lot. Again, this is very technology driven. APIs, obviously, point to point solution are difficult to integrate. API is structured from that complexity, reducing that. Having standard offering, packaged offering, so the more package, the more experience. Again, we sell banking. We talked a lot about technology today. But don't forget, contrary to a lot of the people in that space, the new entrants mostly, it cannot only be about technology. It has to be also about what you bring into banking and that's the maturity. So that's one of the leverage obviously we use. The architecture we talked about it. A lot of the new technology can only be used if you have the right architecture. And we've been constantly reviewing our architecture, constantly reviewing our product. And we don't the shift might sound trivial. And again, I think Alex mentioned that. We've been running on the cloud for a long time. But running on the cloud is one thing. Leveraging the cloud is something else. And for this, you need to be really native. And this is what we're constantly doing, making sure we leverage. Continuous deployment, I'm not going to come again on this one, but it's a key pillar of how you accelerate. If you're able to constantly bring new features, new functions, reducing the cycle of testing for a bank, making sure that when you build a product, you can very, very quickly ideally, I mean, this is the dream of everybody. You call it in the morning, you deploy it in the afternoon. We know it's a bank. We know it's never going to be like that. But between 6 months and 2 weeks to releasing a product, there is a massive saving there. And then the last point is what I'm going to focus a little bit more on is the implementation strategy, because something needs to glue all this together. Technology, obviously maturity and proven product deployment, how do you make this all as one seamless implementation? And there's been a lot of things in the market. All of our clients have gone through various journeys. We've heard a lot about big banks implementation. For you in the room, if you know, it's like I rip out everything and I transfer everything to the new system. That works when you have a smaller bank or when you have a very simple business because the risk is usually less, the business line is not much. So it's quite easy to do that, but it doesn't fit to bigger bank. It doesn't fit to more complex organizations. So we've observed that shift and we're seeing that this is still working, but again not for all the banks. From that extreme, we move to okay, this is too difficult. We can't do everything in one go. Let's do bits by bits. And that's where the problem started because how small a bit you can do, that's the problem. And we've come from people saying, okay, let's do a certain type of account first and then another type of account. That way you'll never get rid of your legacy. You'll still need to maintain legacy somewhere. You still need to integrate somewhere. And that's probably again, it's like everything. It's a pendulum. We can't do everything in one go. Let's do the minimum thing and add them up. And the pendulum was swinging thinking this is also not viable. Very, very long journey, of course, less risky suddenly because you're doing small bits. But how do you make it in first of all, in a shorter time because if you start adding bits, it's going to take you a long time to get to the end of your journey. And also how do you make sure that you continue innovating? So in between happened and I think driven a lot by the we'll talk about that with Lumi later, driven a lot by the new entrants who had the luxury to say I'm going to build something on the side and I'm not going to look at my legacy technology. I'm going to absorb myself on technology either because I don't have it, I'm a new entrant, so that's very simple, or create something completely new and I will not be bothered with what's around me. And that gave us some idea because we said, okay, that seems to be the fastest way to do it. So if you're able to stand a new bank within a big organization, so you still have to cut off for the complexity of the organization, but only for what is vital, let's put it this way. If you're able to do that with a new entrant, why not doing it with an existing bank? Why not isolating parts of the business that you can isolate and run while the rest is on your legacy rather than hollowing the core, putting little bits and pieces. And this is when we said, okay, that's probably the best option. And this is how we came up with the build and renovate option. So from this new concept that we saw with new entrants, where the build and migrate later potentially to the progressive renovation, which we felt has a value when you say doing front and back separately, but probably becomes a bit more complicated when you say cut the back in multiple pieces. We felt that this was probably the best combination. And we've put that in play that some of our customers were doing this and it's actually dramatically changing the way they're implementing. Again, it's only possible because of the technology we now have available. We're not doing this on our own, obviously. I mean, we are not a services company, and this is the person who's running services and telling you this. I don't have a problem with this. We are a product company. What we want is that what we deliver to the clients, the product, we make sure is implemented the best way possible, follows our best practices. Whatever goes around it, all the other pillars you saw, the integration, the change, all of that we don't need to do. We don't bring much value add for that to be honest. We do not have also the pyramids of skill that you would require, so our price would not be efficient anyway. So we are very clear on what we do in terms of services. Services to us is delivering our product to the best of its efficiency in the best way. The rest all these people do it for us. We help them obviously. They're not going to learn our software by magic. So again, the more you add, the more you change your solution, the more education became vital. So we've moved away from the good old way of classroom training, having people into rooms, again, leveraging technology even in that space. We now have a full offer that is cloud based, that is a membership offering with a portal where our clients, our partners and our own staff are able to get trained, to get certified. So we know by the way that we have a certain level of understanding and knowledge across our ecosystem and it's of quality. So there's different level. We still do classroom, obviously, in some cases, especially for project readiness. When you start a new project, there is a need to put everybody in the room and align on the strategy. Continuous learning, so it's not only continuous integration. We also do continuous learning through the TLC online community. And then the TLC engine, which helps for the entire transformation journey more around processes and procedures and making sure that that follows you along the way of your implementation and then becomes for the bank the repository of where they will hold the new bank pretty much. So that's where we are today with the implementation, very different from what we used to do. And again, as I said, we've seen a lot of example. And I think a good one is what we have done with Liomi. We have Ilan Bugan in here who is the 1st Executive Vice President at Liomi and manages data, but also more importantly is the father of Peppa. So I think he will take you through that journey of a new digital bank. Hi. I have the hard work to speak just before lunch. So I'll try to do it properly. I'm Milan Buganin, Head of Data Division in Bancoleumi, actually in charge of I'm the Chairman of Pepper. That is the most important story here and I'll speak about. And I'll speak over all the story and definitely, Temenos is very important part of the story, but I'll give the entire story of Whistepaper, why we created it and where we are heading. So before maybe speaking about ourselves and about Pepper, I think that it is extremely important to understand the overall macro situation and why we even started this journey. Because speaking about paper, you must understand that we are Bank Lomi is actually one of the 2 biggest, largest banks in Israel. So we are the incumbent. Why an incumbent bank needs a toll to create a challenger bank that actually challenge the incumbent challenge Lomi. So it's extremely and very unusual decision that we have made. And in order to understand it, we need to understand what happens in the last few decades. So when speaking about what happens, I put it in a certain way, you can put it in different ways, but we see that there is one large road with many curves. And what happens is that in every junction, every turn of this road, there are people that are very innovative and were able to envision what's happening. And there are many companies that weren't visionary enough to take the turn and actually left out of the road. So I believe every story starts with these 2 guys from Google that actually changed the world to me because they made an order with our information. We had the Internet before them, but they made the first order that enables all the things that followed them to happen. And many things happen. I'll focus only on few things that are important to our story. We see here one of the huge stories of Amazon and Netflix and that point of time around 2000 plus, what happens is that we were introduced 2 of them with the long tail concept. That challenge what was obvious companies like Tower Records and Blockbuster and guess what happens with the new concept that they introduced? Since then, we're speaking about Netflix moment, one moment, one Netflix moment that immediately after few companies which were very strong do not exist anymore. And they cannot do, they cannot fix whatever they made wrong in order to get back to the competition. It's very violent. And when looking further, we see that it's happening again and again. Here it's Mark Zuckerberg and the revolution that he has made. I'll stop one moment on this area that is known to all of us. If we're looking back then to 2,007, Nokia was definitely one of the biggest companies, 60% firm member well from the stock market in Finland and they controlled all the mobile world. And if you remember well, probably as I see most of us have been the same age back then. So they tried to make the mobile as smaller as possible. And suddenly came Steve Jobs and said, no, we want to make the mobile bigger. They said, it's crazy. And this building only with 5% of the mobile world, which is the smartphone, back then less than 5%, let them fail. What happens is that very fast they understood that it's threatening them, that they are going to be impacted severely because of that. And then they try to change very slow, always late. If you remember, they made many changes. For example, they decided to create their own operating system. But back then, there were 2 operating systems, one for iOS, one for Android, each one with 600,000 applications. They needed to go to 600,000 developers to convince them to develop also for Nokia. Definitely, they didn't understand the market. And the market was violent to them. They purchased afterwards Microsoft operating system. And in the end, they decided to go to the operating system of Google. But everything was too late and they lost the market. They lost the market because they didn't see what happens and they didn't do the right activities on time. And I can speak about each one of these junctions. Really, it's an hour that we can speak about it. But I want to go fast and to speak about our story. When looking over the revolutions, you see that the banking area is the last one to come. The revolution was all over, but banking were a bit out of it. And their change is slow. Most of them come in bank, changing slow, changing a bit their system. They don't understand that there is a real threat to their business. And today, we see more and more challenger banks like Monzo, Pepper, No. 26. And they are saying, yes, you know what, they are targeting only small portion of our customers. We are still strong, we are better, we will do very well. And we are saying, you know what, I'm saying to the incumbent banks that these challenger banks are actually targeting their route. The millennials that are actually coming to this bank and we'll speak about them are moving. And they will be the new customers of the new banks. This the leaves of the new tree will come from these roots. And guess what? They will have a big problem. So we knew it and we saw it in Lumi 4 years ago. And we said, you know what, we want to make our own Challenger Bank, even as an insurance to our business. And let's see what we have done and what are the results. So we said for ourselves, first of all, we want to build a bank that people love because people do not like banking. They do not like banks, definitely, especially after 2,008. And let's face it, banking is painful. And why it's painful? Before saying why it's painful, so you just to see this picture. So 71% of the millennials would rather visit dentists than listen to their banks or go to the branches. By the way, I see a survey I saw a survey in America that say that the only things that people hate more than going to the branch is going to the dentist, going to cemetery and sell their houses. So and then we are coming. And why it's painful? So think about it. With all the investment of the big banks in technology, still we have lots of branches, lots of bankers in these branches, ridiculous fees that you need to pay just to manage your current account because there are lots of people behind it, thousands of people behind every current account. And more important, most of the customer are totally confused by the banking products. They do not understand it. They are totally confused. It's amazing how they are confused, especially when you are dealing with millennials. So we wanted to do something that is totally different, dramatically different from what exists today. And in order to do that, we knew that we cannot just take something and change it a bit. We need to do probably almost everything from scratch different. And speaking about Thanos, I can tell you that we thought of we actually observed and saw what happens in the market. And we say we said, you know what, we have a core system, Lomi core system, 40 years of investment into it. Maybe we'll take that and we'll just put a nice layer on top. And maybe we will confuse our customers. They will see a nice application and we think that it's a new bank and maybe we'll acquire them. But we understood and we saw that it's not working even in places I don't want to say the names because not to insult other banks, but few banks did it and failed. We decided we understood that we want to do something totally different because we want to achieve totally different targets. And by the way, when speaking about what is the biggest advantage of these challenger, more techie banks, And I'll speak about many challenges many advantages. But one biggest advantage is their ability to move fast, because the market is always changing. Only if you can run and if somebody because we're doing wonderful things in Israel, I can tell you all the big banks try to imitate and to copy what we are doing. But it takes them years to copy what we are doing in 2 months. So we are trying to do more in this time with less budget, with more innovative people. And this is the competition. We know that everybody will try to copy. Also with old system, you can do nice things, but it costs you fortune and it takes you time. So speaking one word about America before we are getting into maybe what's special in pepper. We did nice thing in Israel and we'll speak about it. We are checking also our ability to go to America with that, because we believe that in America it's the right time to come with innovative products. So we went there and we checked what happens and we saw that everything is ready for this challenger approach, the new bankings, the real time banking and the people understand it. If you are asking millennials, they don't understand the banking there, definitely, they are not loyal. They do not have a problem to get banking from Amazon, Google and Apple. They grew up on these companies that gave them a wonderful experience. So now you cannot confuse them by saying that the incumbent banks will are better experienced for them with their branches in the place that they need to go with their signature, they do not have signature at all and to sign on documents that they don't understand. We know this is a big opportunity. And with what we have done, we think that it fits perfectly to there also. So what is paper? So speaking about paper, first of all, it's a mobile bank. Looks obvious today, not obvious at all when we're looking for years backwards when we started. And most of the people did their banking activities in websites and in the branches, we decided that the future is mobile. It also enables you to be much faster because you have one channel, it's much easier to adopt it and to move very fast with them. So it's a digital only bank, incubated in Bank Lumi. And when we say incubated in Bank Lumi, we needed to do also in the bank something totally different. We created a separate tech entity inside the bank to be able to carry this burden, separate from Bank Lomi, and I'll speak how these two journeys are also aligned in the future. But we needed to do something also with the culture, with the people, with the innovative people. We needed to create everything from the beginning. So we launched in 2017. And we have since then the highest market share of new banks accounts, which is not obvious at all. We, the new bank in Israel, recruit more accounts, more new accounts than any other big bank in Israel. And it's growing and growing comparing to them. I can tell you that we introduced free products. I'm not sure if it's good to say or bad to say, but we have a waiting list even now of around 4,000 accounts that wants to open. And the waiting list is because everything is digital in the process, but the regulation has force us to do a small video chat. This small video chat creates a huge line of waiting list because we're adding trying to do our best. We're 24x6. Most of the people are doing it in the middle of the night, but still there are many joiners. And of course, that we are ranked as part of the top mobile banks worldwide. So let's see if you will talk about banking. We will understand that it's time to move forward and discover a whole new world. A banking world that speaks your language is beautifully designed and provides a unique user market. We're also very excited about the 100% mobile. So no branches, no checking account fees, and a bunch of personal updates and insights to help you market. And we're also seeing a lot of growth in the marketplace. And we're seeing a lot of growth in the marketplace. And we're seeing a lot of growth in the marketplace. And we're seeing a lot of growth in impressive. But what does it mean? A news feed packed with content relevant to you. Imagine real time updates on all your total cards expenses, your account movements after weekends and holidays, comparisons with the banking activities of people just like you, instant alerts about duplicate charges, consumer tips, and that's just the tip of the iceberg. Of course, all this is on top of full account management, a checking account, a credit card, cash business. We're very excited about the progress we've made in the past. We're very excited about the progress we've made in the past. We're very excited about the pretty cool. So let's speak about few elements that we saw in this short movie. When speaking about paper, it's not like when we're speaking about growing banks like Marcus in America, they're focusing only on debits, on deposits or any other single product. So Pepper is an entire bank with everything that is needed in order to create a very good engagement between this bank and the customer. And in order to do that, you need lots of banking products. You need checking account deposit loans, credit card checks, saving, P2P payments, investment. We have 3 applications as you see as you saw. 1 is for moving money between peer to peer, one is the banking itself and one is investment application that we are launching only this month. So what are the things that we emphasize on paper? First of all, as I said, it's all mobile bank. Everything is in the mobile. Now think about it. We have 5 sense. If you would like to use only 1 sense, you really need to excel in this sense. And that's what happens in paper. We don't have any other channel or any big channel. So we need to excel in this channel that's called mobile. It shouldn't be just an application on a mobile. It needs to be extremely good application when we're not trying to compare ourselves to the other banks, but we're trying to compare ourselves to the big tech guys like Apple, Google, Amazon. These are the Facebook, of course, these are the people or the companies that we are trying to lend from. So banking wise, we're saying there are no fees for a current account ever. Of course, that is cannibalization of the old bank. But think about it, we are doing the same banking without the so many troops that are needed in order to make the banking. So there is a reason why we cannot we can afford this kind of banking. And an all new technology, why an all new technology? Because as I said, we want to be a real time banking. We want to do banking in a totally different way. When you take a loan in paper, you get it in few seconds. You take a deposit, you get it in 2 seconds. You swipe your card somewhere, you will see on your application immediately that you swipe your card, how much where and how much it cost you. You're going to an ATM, it will tell you how much money you withdraw, what is the fee that you go that you paid in this ATM no matter where is it in the world. So actually, in order to do that, you understand that you cannot use the old technology that the bank says. And because of that, we had this to me, one of the biggest decisions is where what is the right core in order to create this banking. And I was back then I back then led this process of choosing the right core banking that will fit this journey. And I can tell you that there were not too many hesitations for me to choose Temenos, because I came from by the way, before Lumi, I was in Amdocs 15 years. I know the tech world very well. I was almost everywhere in the world selling to companies, working in the technology. I understood what is the main difference between a product and a solution. We have a solution. We have a very good solution to core system in Lumi, 40 years of investment. But think about it, it's insane what the banks are doing. They are investing lots of money into a software product that has only one customer, only single customer. How can they excel when they have only 1 single customer? So we understood that we don't want it. We want to choose something else. And I wanted the product, why a product? Because I wanted that when I'm running and trying to recruit more and more people to my bank, I want that someone will think about and will develop more feature and will go forward even faster than myself. And this is the sense of choosing a product. And by the way, there are many solutions in the market, many companies that provide core system, not all of them behave like products and I don't want to speak about them, but that was one of the focus that was interesting to me when we chose Indian Temenos. And I can say, looking 4 years backward that we didn't choose a provider, we chose a partner that went with us into this journey. Here, what have heard what are our problems. And I was happy to see that we started in Release 15, now we are introduced Release 18. And I was happy to see that many of the things that we need in order to continue and compete and to be number 1 in what we are doing, so many features, many functionalities are introduced in these versions from data needs, real time in extracting of data to our data lakes and long origination new process and so on and so forth. There are lots of things that have happened there, a continuous upgrade and so on and so forth. So we were happy to see that 3 years after we started, because in the beginning when you start, you don't know that you have made the right choice, that it's going on the right direction with us. And we need it even further because we intend to do in America a cloud based solution and it's important for us to go also to this direction. And of course, it's not only the only technology that we have chosen. We couldn't go to the public cloud back then, but we have done a private cloud with VMware and every single technology that we chosen back then was with lots of sold. The next thing that we have done is a bank that is totally personal. And I can tell you one thing. If you open, if 3 people has an incumbent bank an application, a banking application, they will open it up. They will see exactly the same application, but with different numbers, your numbers. So it's personalized because I have in my current account X amount and someone else's Y amount. When few people will open Pepper, they will see a totally different application because it's personalized. It has a feed like Facebook or Google Facebook or Instagram. And this feed is totally adapted to you. It gets your content, content that you are interested in. We are checking. We have a big data to check-in or whether you are reading these articles or not in order to be more focused about your needs. The statistics that you get are according to your activities, the suggestion and the promotions that you have are according to your behavior. Even proposal like movies and other benefits that we're giving to you will be according to your behavior. And of course, if it's not we're not where we want to be and we're trying to refine ourselves all the time, but personalization and simple and smart user experience is one of the main focus. By the also our language is very adopted to people that do not understand banking. It's very simple, understood, clear, without small lines, without hidden lines. Everything is focused to be very simple. And just recently, I think the regulator changed for us few regulations that enable us to open a new bank account also from for young from that are 16 years old and on. Beforehand, everybody that want to open a new account in a digital bank need to go to open an incumbent bank and just the second account needed to be in the digital bank because they needed the face to face with a banker in the branch. And it's changed. And since then since that changed by the way, on the same day that the regulator changed the regulation, we launched the product, same day. It's never happened in Israel at least. And since then, that day, as I said, there is a boost in new accounts of youngers that are coming to us because the products are very adapted to them. We were focused that if someone is 16 years old, he will not need his parents in order to register to the bank. It's his own decision. We will explain him exactly what he's doing. He doesn't need approval, guarantees or whatever. The structure of the account adopted to Young's and according to the it's debit cards, they cannot go into overdraft. We explain them exactly what they are doing. Why? Because we want them to have a very nice experience from the beginning. You saw banking, people are not leaving it too much. So when they have a very good experience, in the end, these young guys that do not have much money today, tomorrow will be the primary accounts in the banking. And we are focusing long term engagement and not a very short engagement or a product engagement. And this is maybe the differentiation between paper to other banks. Speaking about how it looks like. So as I said, 3 applications, the banking application, Pay, which is peer to peer payments and investment that is a beautiful application that we're launching just now. We have our own front end service layer that connect the frontend to the backend, big data infrastructure and technology that is based on Temenos core banking, VMware and big data infrastructure. And of course, that we brought over the knowledge that we have from Bank Lumi in order to do the banking also in paper and to challenge it, of course. Speaking forward a bit about what we intend to do. So we saw that we created a very nice banking paper with a new core. And we see that in Bank Lumi, we have a problem with our core. The question is how much time you can continue with such huge investment every year for one single customer, Bank Lumi. So Bank Lumi is developing this old core and cannot move very fast because it's cost fortune only for 1 customer, Bank Lumi. So we understood that we need to do something a bit different. And to use the asset of paper is working. He has less customers than Bank Lumi. So definitely, it's opportunity. So we are taking now the core and we intend to enhance it with the features and need of Bank Lomi in order that in 2, 3 years' time BankloMe will also be connected to this new core and actually we'll remove all the old core with all the old technology that align and that we are using today. So this is an amazing journey that we started just now. This year, we started or last year, we started the program. And it's extremely important for I would say, for the future of Banco Lummi. That's all I have to say about Peppers. So thank you very much and enjoy your lunch.

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